Accounting Multiple Choice Question – 9 September 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting
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On 30 September 2015 a business’s current assets totalled £28,000. The next day only two transactions took place.

  • Inventory bought for cash. The list price of £2,000 was subject to a trade discount of 20% and a cash discount of 5%. Payment was made immediately.
  • A bad debt of £400 was written off.

What was the total of current assets on 2 October 2015?

Select ONE answer:

  1. £27,680
  2. £28,080
  3. £29,520
  4. £29,600

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – £2,000 *0.8 = £1,600 * 0.95 = £1,520 ==> £28,000 – £1,520 + £1,600 – £400
  2. Not correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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